What is the Streamlined Sales and Use Tax Project?
The Streamlined Sales and Use Tax Project began in March 2000. The project was established to simplify and modernize sales and use tax collection and administration. The project includes representatives from the states (including local units of government) and the business community (including national retailers, trade associations, manufacturers and direct marketers). In 2004, Michigan enacted Streamlined Sales and Use Tax legislation that substantively changed sales and use tax collection processes. One of the primary purposes of the Streamlined Project is to encourage the voluntary collection and remittance of taxes by out of state vendors. Currently, many out of state vendors who make considerable sales into a particular state lack sufficient contacts (nexus) to be required to collect taxes on those sales. For example, a California Retailer does not have any stores or other physical presence in Michigan. However, the California Retailer maintains a web site and mail order operation
